Service tax entries

Cenvat can be availed on 25% on the basis of vendor's invoice.

Balance 75% paid by the recepient can be availed as cenvat based on the sevice tax challan after making payment of tax.

As regards accounting is concerned:

Firstly liability of service tax has to be created with a debit to a Suspense A/c

After making payment of service tax, the amount in suspense A/c can be transferred to regular cenvat credit A/c.

Otherwise, all other accounting will remain the same.